EUR analysis 16.12.2019

The euro currency fluctuated in a narrow range tilted to the upside during the Asian session against the US dollar on the threshold of economic developments and data expected on Monday by the economies of the euro area and the US economy the largest economy in the world, and in the shadow of markets pricing the developments of Britain's exit file from the European Union after victory victory Crucial to British Prime Minister Royce Johnson in the recent parliamentary elections in Britain that put his government on the right track to leave the European Union by the end of January.

At exactly 05:34 AM GMT, the euro pair rose against the US dollar by 0.08% to 1.1135 levels compared to the opening levels at 1.1126, after the pair achieved its highest level during the trading session at 1.1136, while achieving the lowest at 1.1120, knowing, The pair started the trading session on an upward price gap after it concluded the trading last week at 1.1120 levels.

Currently, markets are awaiting for the French, German and regional economies as a whole. The first reading of the Markit index of industrial and service purchasing managers for the current month is published, which may reflect the shrinking of the breadth of the service and industrial sector in France, the breadth of the service sector and the shrinking of the industrial sector in Germany and the economies of the region as a whole.

On the other hand, investors are anticipating by the US economy the disclosure of industrial sector data with the release of the New York Industrial Index reading, which may reflect a widening of what amounted to 5.1 compared to 2.9 last November, and that comes before we witness the release of the initial reading of the manufacturing PMI Markit is for the US, which may reflect the stability of the expansion at 52.6, little changed from November.

This comes in conjunction with the disclosure of the primary reading of the Markets PMI for the United States, which may reflect a widening of 52.0 compared to 51.6 in the previous reading of November, leading to the disclosure of housing market data with the release of the housing index reading before The National Association of Home Builders, which may reflect stability at 70 in November.

Technical analysis

The decline in the euro against the last dollar stopped at the level of 1.1108, as the price maintained its stability above this level, to start providing new positive trades in an attempt to resume the expected bullish trend for the coming period.

Therefore, we will continue to favor the bullish trend over the intraday and short term unless the 1.1108 level is broken and stability below it, noting that SMA 50 and the stochastic support the expected rise, whose targets begin to breach the 1.1180 level to confirm opening the way for the rally towards 1.1280 then 1.1418 as main stations deification.

The expected trading range for today is between 1.1080 support and 1.1240 resistance.

Expected trend for today: bullish.